Interfax reported that The CHTPZ Group, one of Russia's biggest metals companies, has notified employment services that it could lay off up to 4,900 staff at its pipe division, starting in February 2009, as it scales down production.

The company's PR department said that not more than 2,200 jobs would go at Chelyabinsk Tube Rolling Plant and not more than 2,700 at Pervouralsk New Pipe Plant.

It said that "the staff optimization arose due to the reduction in the production program, caused by falling demand for tubular products." The pipe mills intend to retain skilled workers but hours and shifts could be reduced in order to safeguard jobs.

The group has already said that it is cutting office staff 30% at its own headquarters, the Uraltrubostal Trading House and the two pipe mills. Almost 800 jobs could go at offices in Moscow, Chelyabinsk, Pervouralsk and elsewhere.

The CHTPZ Group's Pipe Division consists of two enterprises, the Chelyabinsk and Pervouralsk plants, which sold 1.895 million tonnes of pipe in 2007. The group is projecting a reduction in pipe sales by 8% this year to 1.707 million tonnes due to delays with the construction of some major pipelines however it is said that in the middle of October that targets could be lowered again due to the global economic crisis.